What is Risk Management?
Risk management is the process by which organisations systematically identify,
analyse, evaluate and control risks.
The aim is to minimise the impact of uncertainties on objectives — across processes,
information, systems and people.
Sound risk management enables organisations to make well-considered choices about prevention, mitigation and acceptance.
🧠 Why risk management?
| Goal | Explanation |
|---|---|
| Safeguard continuity | Prevent critical processes from failing |
| Safety and reliability | Detect and control errors, attacks or incidents at an early stage |
| Compliance with laws and regulations | Such as the BIO, GDPR, IEC 62443, ISO 27001 |
| Information-driven decisions | Prioritise the risks that really matter |
| Foundation for security policy | Set up controls, budget and policy based on risks |
🔄 The risk management cycle
-
Identify
- What risks exist within processes, systems or supply chains?
-
Analyse
- What is the likelihood and impact (financial, operational, legal, reputational)?
-
Evaluate / classify
- Which risks are acceptable and which require action?
-
Control
- Apply preventive or reactive measures: technical, process, people
-
Monitor and adjust
- Are controls effective? Are there new risks?
This cycle aligns with ISO 31000 and is applied in the BIO, NORA and ISO 27005, among others.
🧩 Types of risk
| Risk type | Examples |
|---|---|
| Technical | Outdated software, vulnerabilities, weak passwords |
| Organisational | Insufficient awareness, unclear responsibilities |
| Legal/compliance | Breaches of the GDPR, data-breach notification obligations |
| Physical | Fire, water, access to buildings and installations |
| Social/societal | Reputational damage, leakage of citizen or customer data |
| OT-specific | Failure of SCADA, faulty PLC programs, production disruptions |
🏭 Risk management in an OT context
Within Operational Technology (OT), additional requirements apply:
| Specific OT risk | Consequence |
|---|---|
| Outdated firmware | Unknown vulnerabilities, hard to patch |
| Physical sabotage or access | Unauthorised access to field cabinets or installations |
| Missing monitoring | Attacks or faults go unnoticed |
| IT-OT integration without security | Malware spreading, data leaks, production downtime |
Risk management in OT requires attention to availability, in addition to confidentiality and integrity.
📋 Relationship to other frameworks and plans
| Plan/framework | Relationship to risk management |
|---|---|
| Security policy | Builds on risk analysis and classification |
| Incident Response Plan | Responds to identified risks that have materialised |
| Continuity management | Mitigates the consequences of risks that occur |
| Cyber insurance | Financial coverage for residual risks |
| BIO | Mandatory risk management for government bodies |
| IEC 62443 | OT-focused framework for risk zones, threats and countermeasures |
✅ Best practices
- Use a risk register and keep it up to date
- Apply a single classification matrix (e.g. 5x5 likelihood x impact)
- Involve both IT and OT in risk analyses
- Make risks open to discussion: a safety culture starts with awareness
- Combine quantitative and qualitative analysis where possible
📌 In summary
Risk management is the foundation of a safe, reliable and resilient organisation.
Without structured risk analysis, you are working blind — especially in complex IT and OT environments.